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Gold holds steady after snapping a run of four straight weekly losses.
So, why would risk premiums and indicators remain sanguine in the face of a yield spike and hawkish reassessment of Fed rate policy? Phrased differently, what is holding back “risk off” dynamics? A Friday evening Bloomberg headline: “Blaring Bond Alarms Are Falling on Deaf Ears in the Stock Market.”
Mar 6, 2023 - 05:46:04 PST
Interest rates are an important driver of the economy and financial markets. And what has happened to the S&P 500 index since The Federal Reserve started raising their target rate on May 4, 2023 to fight surging inflation?
The three-month London interbank offered rate for dollars, a major global lending benchmark, surpassed 5% for the first time in more than 15 years on Monday.
US banks are being forced to do something they haven’t done for 15 years: fight for deposits.
The euro zone's economic recovery is tentative and fragile, several indicators suggested on Monday, adding to signs that even if a recession may have been avoided, no upturn is in sight.
Christine Lagarde has warned that underlying price pressures will remain “sticky in the short term” and signalled that further interest rate rises from the European Central Bank are very likely as “inflation is a monster that we need to knock on the head”.
In some of the world’s most vulnerable developing nations, the situations on the ground are dire. Shortages of dollars are crimping access to everything from raw materials to medicine. Meanwhile governments are struggling with their debts as they chase rescue packages from the International Monetary Fund.
San Francisco Federal Reserve Bank President Mary Daly on Saturday sounded a clear warning on the inflationary threat, and signaled that the U.S. central bank may raise interest rates further, and keep them there longer, than has been expected.
The Treasury Department is preparing a new program that could prohibit U.S. investment in certain sectors of adversarial nations, the Wall Street Journal reported on Friday citing copies of reports provided to lawmakers on Capitol Hill viewed by the newspaper.
Mar 6, 2023 - 05:23:51 PST
Several shifts in alliances and bifurcations are happening right now which are going under the radar.
The dollar steadied on Monday as investors awaited testimony from Federal Reserve Chair Jerome Powell ahead of the February jobs report at the end of the week that will likely influence how much more the U.S. central bank will raise interest rates. After delivering jumbo hikes last year, the Fed has raised interest rates by 25 basis points at its last two meetings.
“Inflation and the future depreciation losses that will arise from the ECB’s monetary policy – adopted in violation of its mandate – will be the nail in the coffin of Europe’s prosperity and the end of the euro,” declared Alice Weidel, co-leader of Germany’s rightwing AfD party.
The unprecedented monetary easing by the Bank of Japan over the past decade has reshaped the nation’s lenders, from their asset holdings to loan income. That may be about to change as the central bank prepares to take on a new chief next month.
Lawmakers Unveil Plan to Keep Americans From Claiming Social Security Too EarlyMar 6, 2023 - 05:19:07 PST
Ideas include bringing back paper statements and changing confusing terminology.
"I think that the housing market has collapsed," Friedman told analysts on a December earnings call. "And it went down pretty viciously as interest rates have went up. It's just a lot of uncertainty right now. But one thing I'm certain of the housing market is collapsing at a level I haven't seen since 2008. I haven't seen this kind of drop since 2008."
Stock Futures Are Little Changed as Investors Look Ahead to Powell Comments, Jobs Data This WeekMar 6, 2023 - 05:13:45 PST
Wall Street is coming off a positive week for the major averages, where the Dow Jones Industrial Average snapped a four-week losing streak.
Note: This article has been edited with additional data reported by the World Gold Council released after publication.After charting the highest level of net gold purchases on record in 2022, central banks started out 2023 right where they left off.Central banks globally added another net 77 tons to their gold reserves in January, according to the latest data compiled by the World Gold Council.
The markets still seem to believe the Federal Reserve can ratchet price inflation back down to 2% while bringing the economy to a relatively soft landing. In his podcast, Peter Schiff throws cold water on this hopeful narrative. He goes through the economic data that came out last week shows that all roads appear to lead to a hard landing and higher inflation.
The much-anticipated debate is now posted, and it's up to each individual as to what they believe is the more important message. The discussion starts discussing the supposed billions of Grand Canyon Gold and then moves to market manipulation and why energy is so vital, even though most don't consider energy...